Malaysia is just at the start of an oil boom, on the back of the promising outlook for the exploration and production (E&P) industry.
Developments in Deepwater O&G Projects
The country’s deepwater projects will assume a prominent role in providing new growth opportunities in Malaysia and are expected to produce about 250,000 bpd of new oil by 2010. All in, nine deepwater fields have been identified for commercial operations from 2007 to 2013.
In November 2010 Malaysia’s national oil corporation Petroliam Nasional Bhd (PETRONAS) announced its intention to encourage the exploration and extraction of oil from marginal fields within the Malaysian basin on a Concessionary Fiscal System wherein Petronas retains ownership of extracted petroleum resources within the framework of Risk Service Contracts (RSC), incentivised by tax cuts from 38 per cent to 25 per cent for marginal field development. The Malaysian Government has also waived the export duty on oil produced and exported from marginal fields.
| PETRONAS E&P Business Quick Facts